Toro Gold Ltd Gabon Investment Forum London November 2012
Disclaimer This presentation is for informational purposes only and may not be reproduced or distributed to any other person or published, in whole or in part, for any purpose. This presentation does not constitute an offering memorandum or an offer to sell or a solicitation to buy securities of Toro Gold Ltd (the “Company”) and should not be relied on in connection with a decision to purchase or subscribe for any such securities. No reliance may be placed for any purpose whatsoever on the information contained in this presentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or on behalf of the Company, its shareholders, directors, officers or employees nor any other person as to the accuracy or completeness of the information or opinions contained in the presentation. 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This presentation contains “forward-looking information” which may include, but is not limited to, statements with respect to the future financial and operating performance of the Company, its subsidiaries and affiliated companies, and its mineral projects, the future price of gold, the estimation of mineral resources and ore reserves, the realisation of mineral resource and ore reserve estimates, costs of production, capital and exploration expenditures, costs and timing of the development of new deposits, costs and timing of the development of new mines, costs and exploration capital of mining exploration operations approvals licences and timing of future exploration, requirements for additional capital, governmental regulation operations and operations, timing and receipt of approvals, licences, conversions under applicable mineral legislation, environmental risks, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries and/or its affiliated companies to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; conclusions of economic evaluations and studies; changes in project parameters as plans continue to be refined; future prices of gold; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, insurrection or war; delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this presentation and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. Technical disclosure in this presentation has not been prepared in accordance with Canadian National Instrument 43 -101 or the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, as published by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (“JORC”)
Toro Gold Ltd - Overview • Toro Gold Limited is a gold exploration and development company focussed on Equatorial Africa • Its flagship asset is the Mako Project in the Republic of Senegal (100% indirect interest) • • • Mineral Resource Estimate of 1. 6 million ounces at 2. 0 g/t Including 1. 0 Moz at 3. 0 g/t in the Indicated category Actively drilling highly prospective Guilengbe Project in Guinea (100% earn-in) • Initial target to identify resource of approx 2 Moz at >1 g/t • Strong pipeline of additional 7 exploration projects across 6 African countries • Experienced management team with pan African gold exploration success • High quality, supportive shareholders • Toro Gold projects (Source: Company) Macquarie Bank (18. 4%), RCF (13%) African Lion (11. 4%), Laurium (8. 3%), RMB (6. 6%) and Sprott (5, 7%) Drilling, Mako Poject, Senegal (Source: Company)
Management Team – A Wealth of Experience • The Management team brings a wealth of experience in the African Natural Resources Sector and is complemented by a board of directors consisting of experienced financial and legal personnel Adonis Pouroulis Non-Executive Chairman (Petra Diamonds, Chariot) Martin Horgan Director & CEO (SRK, Bar. Cap, BDI Mining) Jeff Gard Director (Fluor Group) Howard Bills Director & Exploration Manager (SAMAX, SRK, AXMIN) Boubacar Thera Director & International Business Dev. (AMSG, AXMIN) Gary Townsend CFO (Ashanti Goldfields, Guinor) Glen Armstrong Sustainable Development (IFC, World Bank Group, BG Group) • The Toro Gold management team has the experience and capability to take a project from the earliest stages of exploration through to development and into production. • This includes not only the technical aspects of project development, but the associated corporate, financial and environmental/social aspects essential to the development of a modern mining operation.
A “Discretionary” Dollar – Why Gabon? • Natural Resource companies and their investors have many choices when it comes to choosing the jurisdictions in which they operate – an argument can be made that host jurisdictions are competing against each other to attract foreign investment • A number of factors will determine a company’s willingness to operate in any given country and the question is – what are these factors and how do they relate to Gabon? • Geological Prospectivity – Excellent Potential Demonstrated and relatively under-explored • Emerging Gold Mining Sector – Bakoudou Mine (Managem SA )in Production • Political Stability – Democratically elected Government with a track record of stability • Established Regulatory Framework • Established Fiscal Regime – Free Carried Interest / Royalty Rate / Tax Holidays • Established Infrastructure – Roads / ports etc and banking / professional services etc
Zomoko Projects – Northern Gabon • In May 2011, TGL entered into a Joint venture agreement with Mineroil Gold Gabon Ltd. (“Mineroil”) • Jointly Toro and Mineroil would apply for and explore gold licences in Gabon. • Under the terms of the Joint Venture, Mineroil’s 30% holding is free carried for the first US$3 m of expenditure, then interest is participatory. • Toro Gold Gabon was granted two provisional exclusive exploration permits in April 2011 • • • Zomoko Nord Zomoko Sud The Project areas were selected based on their prospectivity • • Archean geological setting 50 km of mapped Greenstone Belts Coincident magnetic anomalies plus high ground – interpreted as Banded Iron Formations – prospective for gold Evidence of artisanal workings within project areas • Greenfield projects with no previous exploration data available • Zomoko Nord adjacent to the southern buffer zone of the Minkebe national park
Work Completed to Date: A Fast Start • • Exploration work commenced in August 2011 – 3 phases of field work undertaken to date during dry seasons 6 initial exploration targets identified – 50 km of Banded Ironstone Formation ridges Further structural targets identified and tested Next phase of work commencing in January 2013 – follow-up at Ntou North gold prospect and additional reconnaissance soil sampling programmes across the permits • Phase 1 and 2: 50 km of BIF ridges sampled in Q 3 2011 and Q 1 2012; 400 * 100 metre soil grids • Phases 1 and 2: 4600 soil samples collected analysed for gold and selected multi-element geochemistry • Phase 1 results: identified soil anomaly NE tip of 19 km long Nko BIF ridge • Phase 2 results: identified a 5 km long soil anomaly at Ntou North BIF ridge >50 ppb • Phase 3 conceptual structural targets based on regional structural trends – awaiting analytical results of 2600 soil samples 800*100 metre grids covering 100 km of strike on major regional scale geological structures
Zomoko Projects – north central Gabon
Zomoko - Planned Programme • Some US$700, 000 invested to date since May 2011 • Further US$360, 000 planned until Q 3 2013 • Potential for drill targets to be identified • If positive - commence drill testing in late 2013
Gabon – The Challenges • While Toro has found operating in Gabon to be well organised and professional, there a number of challenges to be faced: • Lots of trees – difficult terrain to operate in for basic exploration work of mapping and soils • Lots of trees – operating co-ordination with Forestry Companies for access • Limited Services / Support companies for field work – no international analytical facilities, lack of competitive tension for drilling companies • Expensive – High standard of living in Gabon means field costs are higher than competing jurisdictions
Capital Structure Background • Toro has raised ~£ 30 m in six private placements Shareholder Structure Major Shareholders Shares held Holding in Co Macquarie Bank Limited 2, 450, 000 18. 12% Resource Capital Fund 1, 753, 167 12. 97% African Lion 3 Limited 1, 515, 499 11. 21% Laurium LP 1, 099, 307 8. 13% RMB Resources Limited 876, 500 6. 48% Galena Special Situations Master Fund 755, 000 5. 58% Kansala Resources SA 625, 000 4. 62% Westward Investments Limited 604, 500 4. 47% Sprott 500, 000 3. 70% Chiswick Group International Ltd 238, 700 1. 77% Ocean Equities Limited 213, 500 1. 58% CD Capital 205, 000 1. 52% • In addition, within the 10% limit of issued capital, 195, 000 shares have been issued to Artemis Trustees Limited as Trustees for the Toro Gold Employee Benefit Trust. Artemis trustees Limited 195, 000 1. 44% Martin Horgan 183, 133 1. 35% John Howard Bills Other shareholders (<1. 3%) 177, 133 1. 31% 2, 128, 029 15. 74% • The Company currently has 280, 000 warrants as follows: Total shares in issue • Last financing completed for £ 16 m at 4. 50/share (March 2012) • Toro currently has 13, 519, 468 ordinary shares outstanding • The Company has a policy in place limiting total options outstanding to 10% of issued share capital. To date 972, 196 options have been issued as follows under the share option scheme: • • 169, 196 at £ 1. 75/share 198, 000 at £ 2. 25/share 200, 000 at £ 3. 25/share 285, 000 at £ 3. 75/share 120, 000 at £ 4. 75/share 250, 000 at £ 8. 00/share 30, 000 at £ 5. 00/share Fully Diluted 13, 519, 468 14, 771, 664 100%
Toro Gold in Gabon - Summary • Toro Gold benefits from a highly experienced and successful management team that is backed by a pool of high quality international resource focussed investors. • Gabon is well regarded by the international investment community as a “good” place to invest. • We have commenced work at the Zomoko permits with good results already achieved that are providing further encouragement to continue the exploration process. • We have established an operating framework in the country headquartered in Libreville and are actively building relationships with our key stakeholders. Given our presence in Gabon and the encouragement received to date from both the geological potential and the country as a whole, we are looking to expand our operational footprint should other opportunities be identified.
Contacts Toro Gold Ltd Toro Technical Services Ltd Trafalgar Court Admiral Park, Guernsey, GY 1 3 EL Registered Number: 50076 48 Albemarle St, London, United Kingdom. W 1 S 4 JP Registered Number: 7147329